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A firm is offered trade credit terms of 1 2 0 , net 5 0 days. The firm does not take the discount, and it

A firm is offered trade credit terms of 120, net 50 days. The firm does not take the discount, and it pays on the 60 th day. What is the effective annual cost of not taking this discount? (Assume a 360-day year.)(2P)
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